News & Events

While there is no universal definition of what constitutes a mass shooting, after the Sandy Hook Elementary School murders, Congress defined “mass killings” as those involving “three or more killings in a single incident.” The FBI uses the term “mass murder” and defines it as an event where four or more individuals are killed in a single incident, but the FBI does not have a formal definition for mass shooting. The terminology and definitions matter because they can affect the type of insurance coverage that applies, as well as trigger exclusions. 

With regard to mass shootings, insurers have historically relied on the infrequency of these events, and their ability to exclude gun-related injuries from coverage within policy language to manage risk exposure. Even with the ongoing COVID-19 pandemic, however, mass shooting events in the United States have not slowed down. This continued threat is something insurance companies and the businesses they insure need to be aware of and prepared for. There were 417 mass shootings in 2019 alone, the worst ever record year for this type of attack. In 2017, there was roughly one mass shooting per day. What’s more, firearm background checks reached 40 million in 2020, up from 28 million the year prior. 

Known to most everyone was the 2017 MGM Las Vegas shooting that claimed far too many lives, the claims stemming from which settled for hundreds of millions of dollars, $751 million of which was funded by insurance companies. This mass shooting event and others like it makes it impossible for insurers and their insureds to continue to work around the potential liability exposure associated with active shooters and those they injure and kill. The majority of these incidents have taken place in education, retail, and government and military settings; however, that does not immunize other industries and sectors from security issues or liability exposure. 

It’s also not only large corporations that suffer from deadly violence, as businesses of all sizes are seeking out coverage for mass shooting events, including even municipalities and churches. Even though in most jurisdictions businesses are not liable for the criminal acts of others, they do face risks and liability.

Deadly Weapon, Active Shooter, and Other Insurance Coverage Options

Demand for workplace violence insurance has risen substantially, with one insurer estimating new policies in this area rose 235% in 2018 and then rose over 270% in 2019. Part of this stems from companies wanting to serve victims and provide resources immediately following mass casualty and injury events instead of waiting for what can be long and complex litigation to resolve to be able to help. 

General liability insurance may not fully cover this type of threat and therefore deadly weapon or active shooter policies can kick in once a weapon is brandished. While active shooter liability insurance can help an organization protect its assets in the wake of a shooting incident, many carriers don’t provide this coverage due to the significant risk exposure. Insurance providers now sell alternative “deadly weapon” and/or “active shooter” coverage options, frequently as standalone policies. These types of insurance are meant to cover the expenses uniquely associated with gun violence that are not covered by traditional insurance offerings, and serve as a stopgap when exclusions or limitations might limit or preclude coverage under more traditional policies like GCL and property and casualty insurance. 

Active shooter insurance provides monetary coverage for lawsuits but also functions to cover preventative measures, as well as post-event crisis management for both victims and the brand of the insured. The insurance can pay for victim counseling, medical or funeral expenses stemming from the incident, as well as death benefits to survivors. For the business, coverage can help with crisis management, business interruption, property costs, and prevent costs such as assessing potential future risks, employee training, and the development of response plans. 

Businesses across Florida and around the country need to make sure that they are protected against the lawsuits arising from deadly weapon events and have sufficient, immediately available resources with which to help those who have been harmed and the families of those who have been killed, as well to protect their company moving forward. 

The increased liability exposure resulting from deadly mass shootings has resulted in corresponding insurance coverage litigation. Is your business sufficiently insured in case the unthinkable happens? If a mass shooting event has already occurred or does occur, do you have knowledgeable insurance coverage counsel you can call upon at any hour to jump to your aid and help you manage the many moving pieces that will come with an event like this? Questions like this and more are unfortunate realities for business owners today and our firm is dedicated to serving clients and insurers in their time of need with our depth of experience, breadth of resources, and mitigation and litigation prowess.